Promotions hit record share of Northern Ireland grocery as inflation climbs

Promotions hit record share of Northern Ireland grocery as inflation climbs

Take-home grocery sales in Northern Ireland increased by 2% in the year to 6th September the latest figures reveal.

End of summer activities saw shoppers going to stores less often, with trips down 5.5% versus last year and volumes continuing to decline, down 8.7% year-on-year, according to new data from Worldpanel by Numerator.

Meanwhile promotions accounted for 34% of value spend, the highest share reached to date, with more than £1.5bn now spent on promoted products in-store each year.

Grocery inflation increased again this month to 12.33%, up 0.54% on last month, with Emer Healy, Business Development Director at Worldpanel by Numerator, stressing that the outlook remains precarious, with signs of further pressures in the months ahead for shoppers.

Shoppers heavily relied on promotional offers to offset high prices where they could, as children began heading back to school. Promotions accounted for 34% of value spend, the highest share reached to date, with more than £1.5bn now spent on promoted products in-store each year.

Branded ranges continue to hold majority value share in Northern Irish baskets, at 57.1%, growing by 6.2% and contributing an additional £151 million in value sales compared to last year. Premium own label ranges also continued to show strong value growth, up 13% and adding an additional £20.6 million in value sales to take-home grocery.

“The return to school has brought shoppers back into their everyday routines, with this reflected in growth across key categories,” said Emer.

“Over the 12 weeks to September, bakery pastries grew by 3.2%, savoury snacks by 13.3%, yoghurt by 14.9%, biscuits by 7.7% and coffee by 2.5%, as shoppers returned to their familiar breakfast, lunchbox and snacking occasions. We also saw total toiletries grow by £7.8 million, as households replenished their essentials following the summer holiday period.”

In the supermarkets, Tesco leads in value share at 39.3% as the number one take-home grocer in Northern Ireland. It grew ahead of the market with 7.1% value growth as new shoppers and larger baskets contributed a combined additional £111 million.

Sainsbury’s held its market share at 17.3% and grew in value by 4.6%. The retailer continues to grow by recruiting new shoppers, adding an uplift of £33 million to the retailer’s performance.

Asda sits at 14.1% value share, declining by 7.0%. Meanwhile, Lidl holds 9.9% value share, up 8.5% in value growth. Lidl saw both increased volume of items per trip as well as an influx of new shoppers this period, contributing an uplift of just over £31 million.